Notice of Disputed Debt

Formally disputes the entire debt under FDCPA, FCRA, and UCC. Stops collection activity, forces "disputed" notation on credit reports, and activates multiple legal protections.

Legal Authority
FDCPA/FCRA/UCC
Effect
Stops Collection
Credit Reporting
Must Mark Disputed
Validation
30 Days Required

Your Legal Shield

  1. Stops all collection — FDCPA requires cessation
  2. Blocks credit reporting — Must be marked disputed
  3. Prevents foreclosure — Can't foreclose on disputed debt
  4. Creates evidence — Shows good faith dispute
  5. Shifts burden — They must prove valid debt

Multiple laws protect you once debt is disputed!

Template

NOTICE OF DISPUTED DEBT

FORMAL DISPUTE UNDER FDCPA, FCRA, AND UCC

ALL COLLECTION ACTIVITY MUST CEASE

[YOUR FULL NAME]
[YOUR STREET ADDRESS]
[CITY, STATE ZIP]
[PHONE]
[EMAIL]

[DATE]

SENT VIA CERTIFIED MAIL # [CERTIFIED MAIL NUMBER]

[SERVICER/LENDER NAME]
Attention: Dispute Resolution Department
[ADDRESS]
[CITY, STATE ZIP]

RE: FORMAL DISPUTE OF ALLEGED DEBT
Loan Number: [YOUR LOAN NUMBER]
Property Address: [PROPERTY ADDRESS]
Original Loan Amount: $[AMOUNT]

Dear Sir/Madam:

This letter constitutes FORMAL NOTICE OF DISPUTED DEBT under the Fair Debt Collection Practices Act (FDCPA), Fair Credit Reporting Act (FCRA), Uniform Commercial Code (UCC), and all other applicable laws.

LEGAL NOTICE
THE ENTIRE ALLEGED DEBT IS DISPUTED
ALL COLLECTION ACTIVITY MUST CEASE IMMEDIATELY
CONTINUING COLLECTION ON DISPUTED DEBT IS ILLEGAL

LEGAL PROTECTIONS ACTIVATED BY THIS DISPUTE

  1. FDCPA § 809(b): Collection must cease until validation provided
  2. FCRA § 623: Must report as disputed to credit bureaus
  3. UCC § 3-305: All defenses to payment are preserved
  4. State Law: Cannot foreclose on genuinely disputed debt
  5. Constitutional: Due process requires proof before taking property

SPECIFIC REASONS FOR DISPUTE

1. LACK OF CONSIDERATION
No actual money was lent. The bank created bookkeeping entries using my promissory note as the source of value. My promissory note WAS the payment, not a promise to pay later.
2. FRAUD IN THE INDUCEMENT
I was led to believe I was borrowing pre-existing money. The true nature of the transaction (exchanging my promissory note for newly created credits) was never disclosed.
3. PROMISSORY NOTE AS PAYMENT
In our debt-based monetary system, promissory notes ARE money. My note constituted payment in full at closing. Any additional payment would be double payment.
4. NO PROOF OF DEBT
You have provided no evidence that pre-existing money was lent, the bank suffered a loss, consideration was provided, or a valid debt exists.
5. BROKEN CHAIN OF TITLE
The note and mortgage have been separated, securitized, and transferred without proper documentation. You cannot prove ownership or right to collect.
6. LACK OF STANDING
You are not the original creditor and cannot prove valid assignment of the debt, possession of original note, or authority to collect.
7. SECURITIZATION FRAUD
If securitized, the loan was paid off by the trust. You cannot collect on a paid debt. The PSA requirements were likely violated.
8. ACCOUNTING FRAUD
The bank's accounting shows my note as an asset and created a matching liability. This was an exchange, not a loan. GAAP principles were violated.
9. CRIMINAL VIOLATIONS
Collection attempts constitute 18 U.S.C. § 1584 (involuntary servitude), 18 U.S.C. § 894 (extortionate collection), and 18 U.S.C. § 1341 (mail fraud).

DEMAND FOR VALIDATION

Under FDCPA § 809, I demand complete validation including:

  1. Proof that pre-existing money was lent
  2. Evidence of consideration provided by lender
  3. Accounting records showing money left lender's possession
  4. Original wet-ink promissory note
  5. Complete chain of title documentation
  6. Authority to collect on behalf of true creditor
  7. Accounting of all payments and application
  8. Proof debt has not been discharged through securitization
  9. Evidence that my promissory note was not payment
  10. Legal authority to charge interest on money created from my note

CREDIT REPORTING VIOLATIONS

YOU MUST IMMEDIATELY:

  1. Report this debt as "DISPUTED" to all credit bureaus
  2. Cease all negative reporting during dispute investigation
  3. Remove any foreclosure or default reporting
  4. Provide written confirmation of dispute notation

FAILURE TO MARK AS DISPUTED VIOLATES:

  • FCRA § 623 — $1,000 per violation
  • Defamation per se — unlimited damages
  • Slander of credit — punitive damages

CEASE AND DESIST DEMAND

Effective immediately, you must:

  1. CEASE all collection calls
  2. CEASE all collection letters
  3. CEASE all foreclosure proceedings
  4. CEASE all negative credit reporting
  5. CEASE all attorney actions
  6. CEASE all court proceedings
  7. MARK the account as "DISPUTED"
  8. PROVIDE validation or discharge the debt

Response Timeline Required

Action Required Deadline Consequence of Failure
Acknowledge dispute 5 days FDCPA violation
Mark disputed on credit 5 days FCRA violation
Cease collection Immediately Multiple violations
Provide validation 30 days Debt deemed invalid

CONSEQUENCES OF CONTINUED COLLECTION

If you continue collection on this disputed debt:

  1. FDCPA Violations: $1,000 statutory + actual damages per violation
  2. FCRA Violations: $1,000 per violation + punitive damages
  3. Criminal Charges: 18 U.S.C. violations reported to FBI
  4. Wrongful Foreclosure: Actual damages + punitive damages
  5. Intentional Infliction of Emotional Distress: Unlimited damages
  6. Slander of Title: Damages for clouded title
  7. Abuse of Process: Using courts for invalid debt
  8. RICO: Triple damages for pattern of fraud

AGENCY NOTIFICATION

Copies of this dispute are being sent to:

  • Consumer Financial Protection Bureau
  • [State Attorney General]
  • [State Banking Department]
  • All three credit bureaus (Equifax, Experian, TransUnion)
  • Office of the Comptroller of the Currency
  • Federal Trade Commission

RECORDING NOTICE

This Notice of Disputed Debt will be recorded in the public records to provide notice to all parties of the disputed nature of this alleged obligation. Any party proceeding against disputed debt does so at their own risk.

I am willing to resolve this matter if you can provide actual proof of a valid debt. However, absent such proof, this dispute stands and all collection must cease.

All rights reserved, without prejudice
Under penalty of perjury, I declare the statements herein are true

[YOUR PRINTED NAME]
Alleged Borrower
Date: [DATE]

cc: (all via Certified Mail)
Consumer Financial Protection Bureau
[State Attorney General]
[State Banking Department]
Equifax Information Services LLC
Experian Information Solutions Inc.
Trans Union LLC
[Your Attorney (if applicable)]
[County Recorder (for public notice)]

EVIDENCE ATTACHED

  • Exhibit A: Copy of promissory note (my payment)
  • Exhibit B: Federal Reserve "Modern Money Mechanics"
  • Exhibit C: Bank of England "Money Creation" publication
  • Exhibit D: Previous correspondence showing no proof of consideration
  • Exhibit E: Criminal statutes being violated

After Sending This Notice

Immediate Effects
  • They must stop ALL collection — It's illegal to continue
  • Check credit reports — Must show "Disputed"
  • Document violations — Each contact = FDCPA violation
30-Day Validation Period
  • They must provide validation or cease collection
  • They likely can't validate (no consideration proof)
  • Use as defense if they try foreclosure anyway
If They Violate
  • File CFPB complaint
  • File state AG complaint
  • Consider FDCPA lawsuit ($1,000 per violation)

Post-Mailing Checklist

  • Sent via Certified Mail with Return Receipt
  • Copies sent to credit bureaus
  • Copy sent to CFPB
  • Copy sent to State AG
  • All tracking numbers recorded
  • Calendar marked: 5 days for acknowledgment
  • Calendar marked: 30 days for validation
  • Started log of any continued collection (violations)

Legal Citations

15 U.S.C. § 1692g — FDCPA validation of debts
15 U.S.C. § 1681s-2 — FCRA duties of furnishers
UCC § 3-305 — Defenses and claims in recoupment
UCC § 3-501 — Presentment
18 U.S.C. § 1341 — Mail fraud

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